Cronos Group, a Toronto-based licensed cannabis party, posted sizable fourth-quarter revenue, the company said in an earnings report Tuesday, but its net loss for the period grew sharply – fueled in large part by financial reporting requirements.
Cronos reported fourth-quarter revenue of 5.6 million Canadian dollars ($4.2 million) for the period ended Dec. 31, 2018, up nearly 250% from the same period in 2017.
Full-year 2018 gross revenue totaled CA$17.1 million, up 317% from 2017.
The company’s red ink for the year rang in at CA$19.1 million, or 11 Canadian cents a share, compared with net profit of CA$2.5 million in 2017.
During the quarter, Cronos closed a CA$2.4 billion strategic investment from Altria Group.
Shares of Cronos, which trades on the Nasdaq as CRON, slipped nearly 3% in early trading Tuesday morning, opening at $19.65 a share compared with Monday’s closing price of $20.53.
The Ontario company, founded in 2013, cultivates and distributes medical and recreational marijuana in five provinces across Canada.
Lisa Bernard-Kuhn can be reached at email@example.com
(Get access to more in-depth market analysis, premium features on cannabis investing trends and monthly executive webcasts with an Investor Intelligence subscription.)